I have a client who owns the home his mother lives in. He never lived there. She recently passed away and my client sold the home. He received a 1099-S form. Does he need to report capital gain on this sale given that it is not his primary residence, and he never lived there but has had ownership transferred to him since 2010. I do not see how he can receive an exclusion.

Thank you!

To clarify further, it was his mothers home. Taxpayer never lived there. Mother transferred ownership to son in 2010. Mother continued to live there. She passes away and the son sells the house in 2024. I think he has a gain as well but was having difficulty finding research to this specific situation.